12 Recession-Proof Business Models

In fact, the thrift store craze stayed after the recession was long gone. Plus, it’s just as popular to buy used clothes as it is to buy new ones. Grocery stores are a good sector to be in, as people tend to eat in more. And of course, people will always need toothpaste, laundry soap, and other staples no matter the economic situation. Sales at grocery stores, candy sales, and alcohol sales all tend to increase during a recession.

• For example, you might find you’re waiting for a late client payment, and your credit card could buy you some time.
• Parents can’t simply ignore the fact that their toddlers grow up fast, hence needing bigger clothes and shoes.
• When running a new online marketing agency, you can also embrace your agile status to attract clients.
• Much like business owners, investors and wealthy individuals want to secure their wealth and confirm that they’re well taken care of during the worst times.
• A recession-proof business is one that is not as heavily impacted by the economic effects of a recession, typically stemming from industries that provide basic needs.
• However, infants and toddlers will still need care, so you can focus on that age gap for a recession-proof venture.
• Compensation may impact the order of which offers appear on page, but our editorial opinions and ratings are not influenced by compensation.

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Capitalize on your current customers.

Due to the ongoing pandemic, corporate cleaning services remain in high demand. Businesses regularly need cleaners to sanitize and disinfect lobbies, bathrooms, employee workspaces, and other public areas. However, it’s possible to start small and offer personal cleaning services to your neighbors or small businesses first. Affiliate marketing is another common strategy for adding passive income.

Even during a recession, businesses will still need to pay their bills and keep track of payments and revenue. Automotive services that fine-tune their services to their customer’s needs do especially well during a recession compared to companies that are more specialized. The popularity of working from home is also likely to increase demand for businesses that cater to IT, as companies everywhere need to spruce up their telecommunications. Telecommuting and working from home are only likely to get more popular, especially with so many businesses realizing it’s possible and saving on overhead costs like rent. And with more and more people turning to buying and selling secondhand online, the need for delivery is likely to rise.

Recession Proof Businesses (

For reasons both practical and emotional, even children’s toys and clothes are recession-resistant. Not long after the start of the pandemic, the total sales of children’s toys in the United States grew by 27%. Parents can’t simply ignore the fact that their toddlers grow up fast, hence needing bigger clothes and shoes. And, well, a toy is merely a “want” but parents will need it to pacify their kids.

In our outlook survey, businesses ranked marketing among their top concerns. Owners are worried that price increases will reduce their overall customers, and the end of budget-friendly digital marketing makes customer acquisition more difficult than ever. For automobiles, the so-called wear and tear items will need proper care.

Grocery and related businesses

As with maintenance and utility recession proof business ideas, industries offering delivery services are staying afloat during recessions. In today’s crisis, the social distancing implemented across the globe impacted the freight industry positively. Even simple errands like grocery shopping are now offered by delivery companies. Of course, this implies that the industry has to adapt to the changes brought about by the pandemic. Unfortunately, most business owners are in the dark when it comes to taxes. Accounting assistance will have an understanding of where these tax benefits can be an advantage.

Not everyone takes their pet to a professional groomer, but a lot of people do, so that’s another great business idea. People may cut back on the frequency of cleaning, but they might not get rid of the service entirely. Home services are also great because recessions make for a buyer’s market in real estate. So buyers may choose to do some renovations after they move into their new place. Another recession-resistant business to start is something involving home services. Homeowners will always need anything from plumbing to HVAC to electrical work.

Financial advisory services

It’s actually decided by the Business Cycle Dating Committee, and they have not declared a recession as of the end of July. Contact Customer Support for questions on your products, coaching, or events…. The recession won’t slow rain on the roof, water in the pipes and the need for auto maintenance.

• Sit down with your cash flow, balance sheet, and profit and loss statements.
• A slowdown provides the opportunity to refocus your business and address waste and inefficiencies that tend to creep in over time.
• Due to the ongoing pandemic, corporate cleaning services remain in high demand.
• And despite rising costs, cannabis sales in the U.S. also grew in 2022, expected to reach $27 billion by the end of the year.
• Freelance writers are also needed for businesses, especially for marketing copy.

This is especially true if you think you may need extra capital to get through the recession. You don’t want to find yourself scrambling to secure funds and be unable to do so. Of course, the specifics depend on the nature of the client and the type of work you do.

Babysitting and Child Care

Businesses in the home improvement contracting, auto repair, childcare and accounting industries do well in a recession. Suffice to say, most consumers deem these services as essential and will keep spending their money on them, rather than wait for better economic conditions. If you think you may want or need financing in the future and a recession is looming, try to secure it now, rather than waiting. Loans, credit cards, lines of credit, and even personal investments tend to be harder to get during tough financial times.